Asymmetric Consumption Smoothing

Analyzing account-level data from an account aggregator, we find that households increase consumption when they receive expected tax refunds, as if they face liquidity constraints. However, these same households smooth consumption when making payments in other years, primarily by transferring funds among liquid accounts. Even households carrying credit card debt smooth consumption when making payments, and even highly liquid households spend out of refunds. This behavior is inconsistent with pure liquidity constraints or hand-to-mouth behavior and is most consistent with a mental accounting life-cycle model. (JEL D12, E21, G51, H24, H31)

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Intertemporal and intratemporal consumption smoothing at retirement: micro evidence from detailed spending and time use data

Journal of Pension Economics and Finance ◽

10.1017/s1474747221000330 ◽

2021 ◽

pp. 1-22

Author(s):

Jim Been ◽

Kees Goudswaard

Keyword(s):

Life Cycle ◽

The Netherlands ◽

Time Use ◽

Causal Effect ◽

Consumption Smoothing ◽

Elasticity Of Substitution ◽

Home Production ◽

Life Cycle Model ◽

Cycle Model ◽

Total Consumption

Abstract Using detailed spending and time use data from the Netherlands, this paper analyzes the causal effect of retirement on spending and time use decisions. Both total consumption and disaggregated consumption categories are considered. We do not find empirical evidence for drops in households' total non-durable spending at retirement. Our estimates suggest increases in spending at retirement on goods that are complementary to leisure, but no decreases in spending on goods that are replaceable by home production. The quantitative implication of our empirical results for the Life-Cycle Model is an intertemporal elasticity of substitution for leisure below unity.

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Fraud Detection Life Cycle Model: A Systematic Fuzzy Approach to Fraud Management

International Journal of Computational Intelligence and Applications ◽

10.1142/s1469026815500108 ◽

2015 ◽

Vol 14 (02) ◽

pp. 1550010

Author(s):

Rajiv Arora ◽

Daya Gupta ◽

Payal Pahwa

Keyword(s):

Life Cycle ◽

Credit Card ◽

Fraud Detection ◽

Inference Rules ◽

Life Cycle Model ◽

Cycle Model ◽

Finance Industry ◽

Efficient Detection ◽

Made In

Advancements in science and technology have impacted the global scenario significantly in each and every sphere of life. Unfortunately, this has also caused an increase in the number of frauds in various fields. Fraudsters are making an illegal access to the users' account in parallel with the users without being detected which results in heavy losses in terms of money, data and time. Therefore, detection of frauds has become an important need for the organizations not only to prevent the misuse but also to detect and report any such access as and when it is made. In this paper, a fraud detection life cycle model is proposed which reveals the detection of fraudulent behavior of customers. The objective of this life cycle model is to minimize the frauds occurring in different areas which are sensitive to fraudulent behavior such as telecommunication, credit card, finance industry and so on. We have presented a case study of Public Sector Telecommunication Company to demonstrate the life cycle model and further shown how our proposed life cycle model works on it by using some fuzzy-based inference rules for efficient detection of frauds.

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Liquidity Constraints in the U.S. Housing Market

The Review of Economic Studies ◽

10.1093/restud/rdab063 ◽

2021 ◽

Author(s):

Corina Boar ◽

Denis Gorea ◽

Virgiliu Midrigan

Keyword(s):

Life Cycle ◽

Housing Market ◽

Liquidity Constraints ◽

Life Cycle Model ◽

Cycle Model ◽

Home Equity ◽

Welfare Gains ◽

The U.S

Abstract We study the severity of liquidity constraints in the U.S. housing market using a life-cycle model with uninsurable idiosyncratic risks in which houses are illiquid, but agents can extract home equity by refinancing their mortgages. The model implies that four-fifths of homeowners are liquidity constrained and willing to pay an average of 13 cents to extract an additional dollar of liquidity from their home. Most homeowners value liquidity for precautionary reasons, anticipating the possibility of income declines and the need to make mortgage payments. The model reproduces well the observed response of consumption to tax rebates and mortgage relief programs and predicts large welfare gains from policies aimed at providing temporary liquidity relief to homeowners.

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